TMI Blog2019 (3) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... te. Admittedly, the clove oil is a liquid used to make henna paste from powder and make it marketable as such paste in cones - There is no evidence on record which could show presence of any active ingredients to heena powder to make the heena paste other than the said oil or liquid. Therefore, the present appeal of the appellant is required to be allowed in view of clarification issued by Board vide letter dated 10.07.2014. The facts of the present case did not reveal that any other ingredients at all has been added in making the henna paste. Admittedly, the clove oil is a liquid used to make henna paste from powder and make it marketable as such paste in cones. We note that the said process is for making the paste, marketable/useable m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12/2012-CE dated 17.03.2012, as amended. 2. The brief facts as per show cause notice is that the appellant is engaged in the manufacture of Mehandi Cone/Paste and Mehandi Powder. The appellant was clearing the said goods without payment of central excise duty by availing the benefit of exemption under Notification No. 12/2012-CE dated 17.03.12. 3. A show cause notice dated 23.06.2014 was issued to the appellant for the period June 2013 to March 2014 proposing to deny the exemption and for recovery of central excise duty of ₹ 30,21,725/- on the ground that the appellant was not entitled to claim benefit of exemption under Notification No. 12/2012-CE, as the said notification exempts pure henna powder or paste not mixed with any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edients. The scope of the said entry was clarified by the Board vide letter dated 10.07.2014. The Board clarified as below:- Doubts have been raised regarding the scope of the exemption from excise duty available for heena powder or paste under Sl.No.134 of notification 12/2012-Central Excise dated17th March, 2012 in the context of the phrase not mixed with any other ingredient . It is clarified that the exemption is available to heena powder mixed with a liquid, so far that the liquid is a medium to change the form of heena powder into paste but excludes products like heena dye and such other products which are cosmetics. 7. Ld. AR submitted that henna paste containing other ingredients is not covered by the said exemption. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te, were drawn by the department of the product in question during the relevant period. Further, the SCN also does not rely upon any CRCL test Report. The Ld AR appearing for the revenue accepted this factual position. However, he tries to justify the adjudication order and the impugned order wherein reliance was placed on the CRCL Report dated 29.05.2014, which did not pertain to the period covered in the SCN, but was for the subsequent period, as is clear from the date of the CRCL Report. We are not convinced by the said argument of the Ld AR in view of settled law, as laid down by the Apex Court in the case of Commissioner of Central Excise, Nagpur v Ballarpur Industries Ltd. 2007 (215) ELT 489 (SC) wherein it has been laid down as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Deputy Chief Chemist and Chief Chemist which were not referred in the Show Cause Notices could not be relied upon .. 12. In view of the above referred position of law, we hold that the adjudicating authority as well as the first appellate authority was not correct in placing reliance on the CRCL Report dated 29.05.2014 which was neither forming part of the SCN nor pertained to the lot which were manufactured and cleared by the appellant during the period covered in the SCN i.e. June 2013 to March 2014. 13. Accordingly, the Order-in-Appeal dated 04.04.2018 passed by the CCE(A) is set aside and the appeal filed by the appellant is allowed, with consequential relief. (Operative portion of the Order pronounced in the open court) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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